The Daily Mirror hits back hard, accusing Osborne of being the "smiling axeman" with planned savage cuts that will hammer millions of families. "His cuts package is a huge gamble that could put off voters who are flirting with the idea of voting Tory."

The Times's leader believes Osborne grew in stature yesterday by delivering a painful message to the party and to prospective voters. The Financial Times is less impressed with the announcement, saying the proposals will "barely dent the deficit". Chris Giles argues that Osborne's plans for £7bn of spending cuts "does almost nothing to change the debt dynamics in Britain". All Osborne would manage to do is drop the figure from £97bn to £90bn. The Tories – and Labour – have to yet to clearly explain how they are going to reduce that gaping deficit. The paper produces a useful assessment of each policy.

Simon Heffer in the Daily Telegraph is deeply unhappy about the fact that Osborne has "fallen into the trap set by Labour about the 50p tax rate". He also challenges the idea of Osborne being a shoo-in chancellor if the Tories are elected. The Telegraph leader, however, is far more favourable, praising the shadow chancellor for his "hard pressed realism".

A more pressing contradiction surfaced in the row over Cameron's alliance with rightwing Europeans. Gay rights pressure group Stonewall pulled out of a Pride event in Manchester's Canal Street last night and a demonstration was staged outside in protest at a fringe meeting appearance by Michał Kamiński and Roberts Zile from Europe.

Today begins with an education speech by the shadow schools secretary, Michael Gove, and one on sport by Jeremy Hunt. Law and order follows.

This afternoon, it's welfare reform with Theresa May, and family policy with David Willetts, the shadow minister for universities and skills who somehow managed to land special responsibility for families. Maria Miller is on, too. A Stonewall fringe this lunchtime should be interesting, if it hasn't been cancelled.